Ever since Hero motors chose to set up their south Indian plant in Andhra Pradesh, overlooking invites from its eager southern neighbors Tamil Nadu and Karnataka, business competition has warmed up in south India. Chandrababu Naidu’s visit to Bangalore a fortnight ago, seeking investments to his fledgling state had really set the alarm bells ringing. Andhra’s strategic location which is very close to the capitals of both states is being used as an advantage by Naidu.
- Already Sri city, which is very close to the Tamil nadu capital, Chennai, has developed into a real threat. It has already attracted huge investments in manufacturing which other wise would have gone to Tamil Nadu. Pepsi, Isuzu, Colgate- Palmolive, Kellogs, Cadbury, Alstom, Nippon, Hunter Douglas are among many others who have already set up shop here.. Look here for the complete list. These gains for Sri-city is clearly Chennai’s loss. The rise of Krishnapatnam port in Nellore district of AP is also challenging the monopoly of Chennai port. READ ‘The Hindu’ Report HERE
- Though Karnataka does not have any immediate threat, the state suffers from a huge image and perception problem and is somehow branded as business unfriendly. The fact that a company of the stature of Infosys had to walk away simply because even after 4 long years the state could not lay a road to the new cluster in Devanahalli, had really sullied the state’s image. While the Karnataka government is now trying to undo the damage, several problems do remain. Power shortage, lax bureaucracy and an uninspiring political class are good enough to drive away any investor.
In this regard, The Times of India in its Bangalore edition carried a big 1st page story titled, “Alarm bells in Karnataka and Tamil Nadu as Naidu goes on biz hunt”